AMENDMENTS IN LABOUR LAWS

PREVIOUSLY 1The Act applied to wages payable upto a certain limit for a wage period, usually a month. The words used in the Act were persons employed and not workmen or employees. It means that the Act was applicable to all employees and workmen drawing wages not above the prescribed limit. The Act applied only to the persons employed in factories or in railways whether directly or through a contractor.

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PRESENTLY 1The Act now applies to every industrial and commercial establishment including a factory and Bank. The same words namely, persons employed and not workmen or employees are still used in the Act. The limit of wages as a criterion for the application of the Act has been abolished. It means that the Act is now applicable to all persons employed in the industrial and commercial establishments irrespective of the wage limit.

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THE WORKMENS COMPENSATION ACT, 1923 Previously the Act applied to all workmen employed in any capacity as specified in schedule II of the Act and drawing wages not exceeding a certain limit. It did not, however, apply to those employed on casual basis or employed otherwise than for the purpose of the employers trade or business. Since casual workman has been deleted from the classification of workmen as given in Standing Order I of the W.P. Standing Orders Ordinance, 1968, the Act will now apply to all workmen employed in any capacity as specified in Schedule II except those employed otherwise than for the trade or business of the employer. The Act uses the word workman but at the same time lays emphasis on employment in any such capacity as specified in schedule II. The condition of wage limit has also been deleted. Hence every workman employed in any specified capacity irrespective of wage limit will now be entitled to the prescribed rate of compensation in the event of death or total disablement.

W.P. STANDING ORDERS ORDINANCE, 1968 No gratuity shall be payable for the period where contribution has been made to an approved pension fund as defined in the Income Tax Ordinance, 2001 and the employers contribution is not less the 50% of the limit prescribed in the aforesaid Ordinance with the workmen also contributing the remaining amount. Gratuity is already not payable for the period of existence of provident fund to which the employers contribution is not less that the workmans contribution. There is, however, no bar if provision is made for gratuity in addition to the provident fund in the employers own rules or is so provided under a settlement arrived at with the CBA.

COMPANIESPROFITS (WORKERS PARTICIPATION), ACT, 1968

Previous definition of worker : Worker in relation to a company means an employee of the company who falls within the definition of worker as defined in the IRO, 2002 and is in the employment of the company for not less than six months. Present definition: Worker in relation to a company means an employee of the company including employed by or through a contractor working for or in the company for a period of not less than six months.

COMPANIES PROFITS (WORKERS PARTICIPATION) ACT, 1968 (AS AMENDED)

Paragraph 4 : Disbursement of benefits: The share of a worker in annual allocation to the fund shall be expressed in units or factions of units (worked out to two places of decimal) of the face value of rupees ten determined in the following manner, namely:(a) The number of available units shall be so divided in three parts for the three categories of workers mentioned below that a worker in the first of those categories gets four units for each two units that a worker in the second of these categories gets or for each one unit that a worker in the last of these categories gets:-

CATEGORIES
1Workers drawing average monthly wages not exceeding Rs. 7,500.00 Workers drawing average monthly wages exceeding Rs. 7500.00 but not exceeding Rs. 15,000.00 Workers drawing average monthly wages exceeding Rs. 15,000.00. Not with standing anything contained in the scheme, no worker shall, in any one year, be entitled out of the annual allocation to units exceeding the amount of four times of the minimum wages for unskilled workers (4600 x 4 = 18,400).

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EMPLOYEES OLD-AGE BENEFITS, ACT, 1976 (AS AMENDED)

1- The number of persons for the application of the Act shall be twenty instead of ten for industries or establishments set up after July, 1, 2006. 2- Surviving spouse entitled to pension on the same basis as is being used for the calculation of old-age pension instead of minimum pension with effect from 1-7-2007. 3- Both old-age and invalidity pension to be calculated on the basis of last months wages effective 1-7-2007. 4- Minimum pension raised from Rs. 1300/- to Rs. 1500/- p.m. Monthly rate of pension, other than minimum pension, already allowed raised by 15% effective 1-7-2007.

PERIOD OF WORK: It includes the normal work hours, overtime hours and rest intervals (section 3% of Factories Act, 1934). WORK HOURS : It means the normal work hours excluding the rest interval. OVERTIME : It means the hours over and above the normal work hours including the rest intervals. HOLIDAYS: Weekly holidays, annual holidays, compensatory holidays, festival holidays. LEAVES : Casual leave, sick leave, short leave, special leave with or without pay. RELAY/SHIFT: When work of the same kind is carried by two or more sets of workers working during different periods of the day, each of such sets in called a relay, and the period or periods for which it works is called shift.

THE FACTORIES ACT, 1934 WORK HOURS NON CONTINUOUS PROCESS WEEKLY WORK-HOURS: No adult worker shall be allowed or required to work in a factory for more than forty eight hours in any week, or where the factory is a seasonal one, for more than fifty hours in any week; Provided that an adult worker in a factory engaged on work which for technical reasons must be continuous throughout the day may work for fifty six hours in any week. DAILY WORK-HOURS: No adult worker shall be allowed or required to work in a factory for more than nine hours in any day; provided that a male seasonal worker in a seasonal factory may work ten hours a day. INTERVALS FOR REST: a) One hour after six hours working or b) Half an hour after five hours working. and c) At least two intervals of half an hours each before a worker is required to work for more than eight and a half hours.

WORK HOURS FACTORIES (CONTINUOUS PROCESS)

1. 2. Ordinarily eight hours shift. When shifts are changed no shift may be employed for more than 16 hours in one day, that is, two periods of-8 hours each with an interval of 8 hours. The persons who have worked double time shall at next change of shift have a holiday of 24 consecutive hours. No worker shall be employed for more than 14 consecutive days without a compensatory rest period of 24 consecutive hrs. The system of shift should be approved by the chief inspector of factories or the inspector so authorised. The average weekly hours of work per week in any period of three weeks shall not exceed 56. Maximum overtime 12 hours in a week. Week means a period of seven days beginning at mid-night of Sunday. Day means a period of 24 hours beginning at mid-night.

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FACTORY ACT, 1934 (AS AMENDED)

Spread over: The period of work of an adult worker in a factory shall be so arranged that along with his intervals for rest under section 37, they shall not spread over more than twelve hours in any day, save with the permission of the Provincial Government and subject to such conditions as it may impose, either generally or in the case of any particular factory. Women Workers: The provisions of chapter IV shall also apply to women workers subject to the following conditions: (a) No exemption from the provisions of section 36 (daily) work hours) may be granted in respect of women workers. No woman shall be allowed to work in any factory except between 6 a.m. and 7 a.m.

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Provided if the employer arranges for the transport facilities, the women may work upto 10 p.m. in two shifts. Note: Spread over is applicable only to a non-continuous process section 43.

FACTORIES ACT, 1934

(AS AMENDED) Spread over (Section (38) 1- Non continuous process run on the basis of six full days a week: Normal working hours : 8 hours per day Rest interval : hours after five hours working Overtime : 3 hours including hours rest interval on all days (1962 PLC 1380). Total period per week : 72 hours 2- Non continuous process run on basis of five and a half days per week: Normal working hours : 8 hours on each of the five full days. Rest interval : hours on every day of the full five days. Overtime : 3 hour including half an hour rest interval on all five days. Normal work hours : 5 hours on half day. Total period per week : 65 hours.

THE FACTORIES AT, 1934 HOLIDAYS & LEAVES

1- Weekly Holiday:(Non-continuous process). Sunday or on any day in three days before or after Sunday Notice to the inspector of factories necessary. 2- Weekly Holiday (Continuous Process) One day in a week depending upon the shift position. A worker can be required to work for fourteen consecutive days without any weekly holiday if the circumstances so require. The holiday so missed has to be allowed as compensatory holiday as soon as the circumstances permit. NB: Weekly holiday not encashable. 3- Annual leave (All factories) 14 days after completion of one years service-accumurable upto 28 days. 4- Sick leave (all factories) 16 days on half average pay in a year 5- Casual leave (all factories) 10 days with pay in a year. 6- Festival holidays (all factories) As notified by Provincial Govt.

W.P. SHOPS & ESTABLISHMENTS ORDINANCE, 1969

(AS AMENDED)
1- Daily, weekly hours and overtime: Save as otherwise expressly provided in this Ordinance, no adult employee shall be required or permitted to work in any establishment in excess of nine hours a day and forty eight hours a week, and no young person in excess of seven hours a day and forty two hours a week. Overtime permissible but not more than 624 hours per annum in the case of an adult and four hundred and sixty eight in the case of a young person in a year. 2- Payment for overtime: At double the normal rate of wages for every hour. Provided that no such overtime shall be payable to contract workers in receipt of wages being calculated on piece rate basis. 3- Spreadover The period of work of an adult and young person shall be so arranged that inclusive of the interval for rest or meals under section 7, it shall not spreadover more than twelve hours in the case of adult and nine hours in the case of young person. Provided that the total period of work so worked out, in case of an adult worker, shall not exceed sixty hours and by a young person fifty four hours a week.

PERMANENT/TEMPORARY/CASUAL WORKMEN.
CLASSIFICATION 1. Permanent workman PREVIOUS LAW A workman who has been engaged on permanent basis and has satisfactorily completed the probationary period of three months. PRESENT LAW A workman who has been engaged on work of permanent nature likely to last for more than nine months and has satisfactorily completed a probationary period of three months. A workman who has been engaged for work which is of an essentially temporary nature likely to be finished within a period not exceeding nine months. Same as before.

2. Temporary workman

A workman who has been engaged for work which is of an essentially temporary nature likely to be finished within a limited period.

3. Probationer

A workman provisionally employed to fill a permanent vacancy in a post and has not completed three months service therein. A workman whose employed to fill a permanent vacancy in a post and hs not completed three months service therein. A workman appointed in the post of permanent workman or probationer who is temporarily absent.

4. Casual workman

Omitted.

5. Badli

Same-but acquires permanent status if employed for continuous period of three months or more or for 183 days during any period of 12 consecutive months. An apprentice within the meaning of apprenticeship ordinance, 1962. A worker who works on contract basis for a specific period of remuneration to be calculated on piece rate basis.

6. Apprentice

A learner who is paid an allowance.

7. Contract worker

CONTRACT / PIECE RATED WORKER

1. Contract worker in receipt of wages being calculated on piece rate basis not entitled to overtime payment under section 9 of the W. P. Shops & Establishments Ordinance, 1969. On the other hand section 47(3) of the Factories Act, 1934 provides that the Provincial Govt. in consultation with the industry concerned may fix time rates as nearly as possible equivalent to the average rate of time rated workers, and the rates so fixed shall be deemed to be the ordinary rates of those workers for the purpose of overtime.

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W.P. SHOPS & ESTABLISHMENTS ORDINANCE, 1969 (AS AMENDED)

Spreadover in a commercial establishment or office run on t he basis of five and a half days a week: 1- Normal working hours on every day on the five full days: 8 hour 2- Rest interval in every full day: 1 hour after six hours working 3- Overtime on every full day: 2 hours 4- Normal working hours on the sixth half day: 5 hours. Total work hours per week: 11 x 5 + 5 : 60 Three conditions have been observed in the above spreadover. - One is rest interval after six hours working on every full day The other is the spreadover inclusive of rest interval shall not exceed twelve hours in a day. The third is that the total period including the overtime hours and rest intervals shall not exceed sixty hours in a week. The fourth is that rest interval is not included in normal work hours but included in spreadover and the total period.

W.P. SHOPS & ESTABLISHMENTS ORDINANCE, 1969

1. (a).Except as otherwise provided in this Ordinance every person employed in any establishment shall, in addition to the leave and holidays as may be admissible to him under sections 14, 15 and 16 be allowed as holiday, one day in each week. (b) No deduction on account of any holiday allowed under subsection (1) shall be made from the wages of any employee of any establishment. (c) If an employee is employed on daily wages, he shall none the less be paid his daily wages for the holiday, and where an employee is paid on piece rate, he shall receive for the holiday the average of the wages received in the week. (d) The choice of the closed day shall rest with employer who shall intimate such choice to the prescribed authority. 2. Opening and Closing hours: (a) No establishment shall on any day remain open after 8 p.m. (b) No employee shall be required or permitted to work continuously in any establishment for more than six hours in the case of an adult and for more than three and a half hours in the case of a young person, unless he has been allowed an interval for rest or means of not less than one hour. (c) Except with the permission of the Govt. on woman or young person shall be employed in any establishment otherwise between the hours of 9 a.m. and 7 p.m.

INDIAN CONTRACT LABOUR REGULATION AND ABOLITION ACT, 1970 DEFINITION OF CONTRACT LABOUR AND CONTRACTOR
Section 2(B) A workman shall be deemed to be employed as contract labour in or in connection with the work of an establishment when he is hired in or in connection with such work by or through a contractor. Section 2 (C) Contractor in relation to an establishment means a person who undertakes to produce a given result for the establishment other than a mere supply of goods or articles or manufactures to such establishment, through contract labour or who supplies contract labour for any work of the establishment and includes a sub-contractor.

W.P. STANDING ORDERS ORDINANCE, 1968 Section 2(f) (iv) - industrial establishment means(1) (2) (3) ____________________ ____________________ ____________________

(iv) The establishment of a contractor, who directly or indirectly, employs workman in connection with the execution of a contract to which he is a party, and includes the premises in which, or the site at which, any process connected with such work is carried on.

IRO, 2002 CONTRACTOR / EMPLOYER

Section 2 (x) (f) Employer in relation to an establishment includes a contractor or establishment of a contractor who or which undertakes to procure the labour or services of workmen for use by another establishment for any purpose whatsoever and for payment in any form and on any basis whatsoever.

COMPANIES PROFITS (WORKERS PARTICIPATION) ACT, 1968

Previous definition of worker : Worker in relation to a company means an employee of the company who falls within the definition of worker as defined in the IRO, 2002 and is in the employment of the company for not less than six months. Present definition : Worker in relation to a company means an employee of the company including employed by or through a contractor working for or in the company for a period of not less than six months.

COMPANIES PROFITS (WORKERS PARTICIPATION), ACT, 1968

The Act applies to every company engaged in an industrial undertaking which satisfies any one of the following conditions:1) a The number of workers employed by it at any time during year is 50 or more.

2) The paid up capital of the company as on the last day of its accounting year is rupees 20 lakhs or more. This condition now applies only to companies established before July 1, 2006. For the companies established thereafter the condition will be 5 millions rupees or more. 3) The value of the fixed assets of the company (at cost) as on the last day of accounting year is rupees forty lakhs or more. This condition also now applies to companies established before July 1, 2006. For companies established thereafter the condition will be rupees twenty millions or more. Every Company making profits in a year has to pay 5% of its net profit to the workers participation fund for distribution among the workers according to their entitlement.